foto Peter Hilz (C)

Minimum tax rate for multi-nationals will make Belgian Exchequer 1 billion euro the richer

The international fiscal accord on tax levels payable by multi-nationals is good news for the Belgian Exchequer. The agreement that was reached within the OECD and the G20 last month will see tax payable by multi-nationals in Belgium increase by 1 billion euro per annum. 

The figure of 1 billion euro comes from the new Secretary-General of the OECD, the Belgian-born former Australian Finance Minister Mathias Cormann, in an interview with the Francophone financial daily ‘L’Echo’.

The planned fiscal reform that is due to come into force by 2023 will set a minimum tax level of 15% for multi-national companies. The aim of the measure is to stamp out tax evasion. Currently, it is easy for multi-national companies to evade tax by locating their headquarters in tax havens.

Up until now 137 countries worldwide have agreed to the accord in principle. Once in force the fiscal accord will provide a total of 275 billion dollars per annum in additional tax revenue the world over. As regards Belgium, Mr Cormann estimates that it will make the Belgian state coffers 1 billion euro per annum the richer. However, this figure is not set in stone as it is difficult to assess multi-national's income redistribution at this stage.

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